not really. they've got a zero tolerance approach to the appropriation of their symbol because the mission is so important and from their perspective it is all downside risk to them. they don't care about your video game, all they care about is misuse of their symbol.
and they're protected by the geneva convention and have all the weight of law behind them.
if they ask you to stop using their symbol its very simple and you need to stop.
the clarity of the rule means that they don't need to debate which usage is or isn't sufficient to produce the effects, it all simply needs to be removed and then they're assured it is not being diluted.
that is actually a perfectly reasonable perspective.
the fact that it doesn't allow for subjective arguments over the magnitude of the harm being done by the particular violation is a feature, not a bug.